'People are somehow finding savings' for mortgage deposits

Date:Friday 30th October 2009
Author: Susanna Kavka

First-time buyers are somehow stumping up the cash to put down a mortgage deposit, which is important for the housing market, according to an industry expert.

James Chatt-Collins, assistant director of sales at Metropolitan Home Ownership, claimed that many people do not have sufficient money when they first apply to get on the property ladder with the help of a government scheme.

However, he pointed out that there are still many consumers who aspire to own their home, so applications continue to be submitted.

Mr Chatt-Collins suggested that first-time buyers are getting financial support from their parents in order to be able to afford their mortgage deposit.

"At some point between them applying and then getting to the serious stage of progressing to actually become a buyer, they are somehow managing to find the savings," he explained.

This week, the Royal Institution of Chartered Surveyors stated that there had been a positive net balance in the number of first-time buyer enquiries for the eleventh month in a row.